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US accuses Russian bank of aiding Iran’s sanctions evasion

The US Treasury said it imposed additional sanctions on VTB Bank for establishing correspondent banking ties with sanctioned Iranian banks.

US accuses Russian bank of aiding Iran’s sanctions evasion

The US Treasury has accused Russia's VTB bank of aiding Iran in evading sanctions, taking action against an institution already blocked by Washington for Moscow's 2022 invasion of Ukraine. In a symbolic move, the US Treasury Department has imposed additional sanctions on VTB Bank for actions such as establishing correspondent relationships with sanctioned Iranian banks.

The agency has warned foreign financial institutions to cut ties with VTB immediately. The US has been seeking to intensify economic pressure on Tehran, with the conflict entering its seventh month since the US and Israel launched strikes at Iran in late February. Tehran retaliated by blocking the Strait of Hormuz, causing oil prices to soar and driving up gasoline prices in the US, putting financial pressure on American households ahead of the midterm elections.

Since Treasury Secretary Scott Biesent vowed an "economic D-Day" on Iran, Washington has imposed sanctions on other institutions, including the Turkish bank Golden Global. VTB had already faced US sanctions in 2022, with the Treasury Department freezing its US-held assets, calling VTB "one of the largest financial institutions Treasury has ever blocked."

Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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